Farmers say supermarkets must pay sustainable prices for fresh fruit and vegetables and ensure it is produced by reputable growers as major changes are made to the way Australia's fruit pickers are paid.
From April 28, changes to the Horticulture Award mean that farm workers typically paid according to how much produce they pick or pack must be guaranteed a minimum hourly rate.
For casuals that's $25.41 per hour.
Workers can still be paid the piece rate, according to their productivity.
The average competent worker must be allowed to earn 15 per cent above the minimum, almost $30 per hour.
The changes were announced by the Fair Work Commission following a successful appeal led by the Australian Workers' Union (AWU).
AWU National secretary Daniel Walton said the changes would create a safety net for workers.
"Now that's going to make them more productive, that's a better outcome for the farmer, and it's a good outcome for our members."
When the Fair Work Commission decided the piece rate system was not working, Australia's Agriculture Minister David Littleproud suggested any changes could drive up the price of fresh fruit and vegetables.
New rules, new cost of production
Some farmers, like Emma Germano, already pay their workers an hourly rate.
But the Victorian Farmers Federation president said the changes to the Horticulture Award would increase the cost of producing fresh fruit and vegetables and have an impact sector-wide.
"Labor costs are the highest part of the production cost and can usually be up to 60 per cent of the gross farm receipts on farm," Ms Germano said.
Some farmers fear the changes could further compound a national worker shortage, estimated by industry to be in the thousands.
"Previously there was really no impost to on-farm management to make sure that the workers who were less productive were productive, because they were being paid proportionately to their efficiency and their productivity," Ms Germano said.
The piece rate is commonly paid for workers in crops that cannot be mechanically harvested, including citrus, cherries, apples, and berries.
New rules must be enforced, farmers say
The Australian Fresh Produce Alliance's members account for more than half of the horticulture industry's turnover.
Its chief executive Michael Rogers said there must be better policing of the way workers were paid.
"We have a very strong position that anyone who does not pay people properly and treat workers fairly needs to leave the industry," Mr Rogers said.
"It's just simply unacceptable and it undermines growers doing the right thing.
Mr Rogers said changes to the Horticulture Award would cause some businesses to restructure.
"The implications for the decision are far reaching for those employers who haven't been paying well," he said.
"For those employers who have been paying well, the decision probably goes further than was considered by anyone — in the sense that if the 15 per cent loading on the casual rate is compounded it pushes the average hourly rate to $30 per hour, which in anyone's language is a lot of money for picking fruit."
Role for the supermarkets
In the wake of the Fair Work Commission's ruling Ms Germano, a livestock and vegetable farmer, said the supermarkets "simply have to purchase from those growers that they know are doing the right thing".
"Otherwise it doesn't matter what the system is, it doesn't matter what the minimum number is, it doesn't matter how you calculate piece rate," she said.
"If it's not complied with, and enforced, then it's all a moot point.
"I think in a lot of cases, particularly when we see $1 punnets of strawberries, when we see cauliflowers available for purchase for $1, these sorts of things are not sustainable for the industry.
"I think that over time, the messaging that the supermarkets have allowed, has reduced the value of food in people or the community's mind.
"If farmers don't get paid enough for their produce the only shortcuts that can be taken are the cost of labour and the cost to the environment.
"So it's, you know, high time that we had this conversation."
Mr Rogers said supermarkets could not drop retail prices below "critically low levels".
"Once strawberries get to $1 a punnet it gets very challenging for the grower, it gets very challenging for the workers, and the margins are very tight," he said.
In Victoria's Goulburn Valley, where growers were preparing for the piece rate changes mid-harvest, Fruit Growers Victoria spokesman Michael Crisera also called for greater scrutiny of the retailers and processors.
"We're really concerned that there seems to be a lot of focus on making sure that everybody's being paid correctly," Mr Crisera said.
Unions also say they want to ensure that supermarkets are paying sustainable prices.
"This perhaps is a unity ticket for some of the farmers. We want to make sure that there is a reasonable price being paid to the farmers," Mr Walton said.
"That means they can operate a sustainable model and one that's not built on exploitation.
Mr Walton said the AWU was working with retailers to "fix up and problems in their supply chain".
"We want to work with the farmers to make sure that they are getting a fair price so that our members can get a fair wage," he said.
Supermarkets and ethical supply chains
In response to questions from the ABC, Coles said it was committed to the fair treatment of all workers in its supply chains and that it had an ethical sourcing policy to ensure wages meet minimum requirements.
In a separate statement, Woolworths said it paid market price for fresh fruit and vegetables.
"At Woolworths, we're always working to strike the right balance so customers have access to high quality and affordable fresh produce, and suppliers receive a fair market price," it said.
"We'll continue to engage closely with our supply partners as the [piece rate] changes are implemented.
"We set clear expectations for our suppliers to uphold the rights of workers through our Responsible Sourcing Policy and conduct regular due diligence."
Aldi said it had a clear code of conduct and standards which its suppliers must follow.
Watch this story on ABC TV's Landline at 12:30pm on Sunday, or on iview.
